STATE BANK OF INDIA vs M/S CRYSTAL FRUITE PRODUCTS on 30 September 2026

FINAL ORDER

1. The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 20,20,037/- (Rupees Twenty Lakh Twenty Thousand Thirty Seven Only) with further interest thereon from the date of filing the Application till realization.

2. It is the case of the applicant that the defendant No. 1 is the Proprietorship concern with defendant No. 2 as its Proprietor availed the following loan facilities:- I. Term Loan of a sum of Rs. 10,92,000/- (Rupees Ten Lakh Ninety Two Thousand Only). II. Cash Credit Loan Limit of Rs. 1,43,000/- (Rupees One Lakh Forty Three Thousand Only).

3. It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Agreement of loan cum hypothecation, Registered memorandum of Deposit of Title Deeds, Legal Notice.

4. It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

5. In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount 3 4/2022

due in the account.

6. Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 29.01.2026.

7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-08 and got the same marked in evidence.

8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

9. The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA claim as against the defendants? ii) What order are to be passed?

Both these issues are gone into and decided together.

10. The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of Mortgage as claimed by the applicant bank and the defaults committed in the accounts.

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The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

11. Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

12. Taking into consideration the facts that the credit facilities was availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 12.00% (simple).

13. In the result, TA.No.4/2022, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs. 20,20,037/- (Rupees Twenty Lakh Twenty Thousand Thirty Seven Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule to the recovery certificate.

ii) If the sale proceeds are not found sufficient to cover the 5 4/2022

amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.

iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

v) Interim application pending, if any, stands disposed of in terms of this final order.

14. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993. [Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30th Day of September, 2026].

Sd/- (T. RAJESH) PRESIDING OFFICER

6 4/2022

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: V N Srinivas Rai, Chief Manager of the applicant Bank Exhibits on the part of the Applicant:

Annexure Date List of Documents For the Term Loan of Rs. 10,92,000/- A1 28.07.2015 Letter of arrangement A2 28.07.2015 Agreement of Loan cum Hypothecation A3 08.07.2015 Registered memorandum of deposit of Title deeds with translation document A4 14.01.2022 Statement of Accounts 28.07.2015 to 14.01.2022 with certificate For the Cash Credit Loan of Rs. 1,43,000/- A5 28.07.2015 Letter or Arrangement A6 28.07.2015 Agreement of Loan cum Hypothecation A7 14.01.2022 Statement of Accounts from 28.07.2015 to 01.05.2020 with certificate A7 (a) 08.03.2022 Consolidated statement with certificate A8 14.01.2022 Legal Notice A9 25.01.2022 Postal receipts A10 -- Unserved postal article A11 -- Unserved postal article

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

Sd/- (T. RAJESH) PRESIDING OFFICER

7 4/2022